Project Management Professional (PMP) — Question 1189

An organization is initiating a project that will be using new technology. The complexity of the project requires excellent technical skills. After reviewing the proposed project management plan, the project sponsor asks for options to reduce the labor cost without introducing risk to the project delivery.

What should the project manager do first?

Answer options

• A. Review the risk register and assign functional managers as resources.
• B. Perform an analysis of the key cost drivers and present alternatives.
• C. Analyze the resource pool and assign internal resources who participated in past projects.
• D. Review the work breakdown structure (WBS) to ensure there are adequate resources.

Correct answer: B

Explanation

The correct answer is B because analyzing key cost drivers helps identify specific areas where costs can be reduced without impacting the overall project risk. The other options focus on resource allocation or risk management but do not directly address cost reduction strategies.